Binaa Dubai has acquired a 90% stake in UAE-headquartered contracting giant, Al Jaber LEGT Engineering & Contracting (ALEC).
Details of the transaction were released by Trussbridge, the company that acted as the sole financial advisor to ALEC’s shareholders during the transaction.
Under the terms of the deal, the contractor will begin trading under the new name of ALEC Engineering and Contracting LLC.
The size of the transaction, which was announced in Q2 2017, has not been disclosed.
In a ‘Sell-Side Advisory’ listing on its website, Trussbridge stated: “Trussbridge provided comprehensive financial advisory services to the shareholders of ALEC, including: advising them on strategic options, aligning their objectives, positioning the company, identifying potential buyers, and leading negotiations with the buyer on behalf of the selling shareholders.
“Trussbridge also assisted the company and selling shareholders on satisfying the various conditions required to close the transaction,” the statement added.
In August 2016, Gulf News reported that Al Jaber Group – ALEC’s founder and former majority shareholder – planned to raise up to $640m (AED2.35bn) by selling its stake in the contractor and using other assets as collateral for a loan.
ALEC is one of the largest construction companies in the Middle East, with revenue in its most recent financial year hitting $1.06bn (AED3.9bn), and projected income of $1.09bn (AED4bn) for 2017/18,
Between June 2016 and May 2017, the company completed UAE projects including Bvlgari Resort & Residences Dubai, Phase 2 of Dubai Festival City, UAE Martyr’s Memorial Park, and Jebel Ali School. It is currently supporting work on Al Maktoum International Airport's Passenger Terminal Building (PTB) expansion and Select Group's three-tower Marina Gate development.
Headquartered in Dubai, Trussbridge is a financial advisory services provider regulated by Dubai Financial Services Authority (DFSA).
Binaa Dubai LLC is understood to be a UAE-based company that specialises in construction.